Changpeng Zhao – Chief executive officer of cryptocurrency exchange named ‘Binance, stated in a recent ‘interview‘ that recent reports on faux trading volume’ are useful for the cryptocurrency ecosystem.
Zhao, also known by the name CZ, stated within the reports – lastly from ‘Bitwise Asset Management‘ as well as ‘The Tie‘ – on exchanges faking volume’ can end up creating the whole crypto ecosystem a lot of more transparent. He conjointly stressed that the story has nothing to resemble with CoinMarketCap – one among the foremost popular cryptocurrency rankings websites:
“It’s not so much CoinMarketCap’s fault, everybody tried to blame on them [sic]. However CoinMarketCap has a very straightforward reporting mechanism where each exchange reports their own data to them, while they just simply show it.”
CZ conjointly added that Binance wouldn’t argue with CoinMarketCap on Twitter, referring rumoured encouragement to do so from the community “kind of childish.” Instead, the Malta-based renowned exchange is reportedly operating in collaboration with CoinMarketCap’s team to resolve this issue. CZ conjointly proposed that potential penalties from CoinMarketCap, like delisting an exchange that was caught reporting faking volume’, might help to resolve this issue.
CZ underscored that the firm conjointly plans to additional encourage high transparency levels industry wide.
While commenting to the fake volume report published by EtherDesk earlier this week, ‘Joshua Frank’ – co-founder of ‘The Tie’ said that there’s a simple way to distinguish a legitimate transaction dealing from a fake one. Usually, he explained, users would transfer not more than that of one Bitcoin [BTC] [about $4,050 USD at the reporting time] or maybe less at a time, whereas transactions within the $20,000 USD range reported by some exchanges are not genuine.
Moreover recently, crypto index fund supplier named ‘Bitwise Asset Management’ published a similar report, however targeting on Bitcoin [BTC] trading solely. The report, submitted to the U.S. SEC [Securities and Exchange Commission], added that around 95% of the total volume on unregulated exchanges seems to be illicit or non-economic in nature. Above all, Bitwise accused CMC [CoinMarketCap] of listing this suspected information and thereby generating an essential mistaken impression of actual size of the BTC market.
As per Bitwise, Binance is one among the 10 cryptocurrency exchanges out of the total 81 it analyzed that has “actual volume.”
Binance is presently the leading cryptocurrency exchange by adjusted daily transaction volume on CMC [CoinMarketCap], observing $1.1 Bln in trades on the day, at the reporting time.